In the last decade researchers interest in Sustainable Business Models has raised significantly, due to economic, social and environmental problems of the contemporary world. The philosophy and movement of Circular Economy plays an influential role therein, mainly because it provides opportunities for economic growth through environmental friendly solutions. This chapter employs literature review to further the understanding of the role public sector plays in shifting towards Circular Business Models. This work contributes to the debate on sustainable business models in several ways. It outlines the facilitating role of the public sector which aims to support private sector business models through six types of interventions. It also attempts to provide an early conceptualization of public sector circular business model. Building on that, it argues for the significant role of design in pursuing opportunities to change such business models into a more circular ones.